One week to an improved tax position – Tip 1

Tip 1: Purchase Capital items up to $20,000 prior to 30 June, 2017

Small businesses with an aggregate annual turnover of less than $10 million are able to immediately deduct the cost of each and every depreciating asset that they purchase for less than $20,000. In order to access the deduction, the asset must be purchased, installed, and ready for use before 30 June 2018. An immediate deduction can be claimed to the extent to which the asset is used for income earning activities (i.e. business purposes).

All assets (including new and second hand) are eligible, except for a small number of exclusions. There is no limit on the number of eligible assets costing less than $20,000 that you can immediately deduct.

Disclaimer: This article contains general information only and is not intended to constitute financial product advice. Any information provided or conclusions made, whether express or implied, do not take into account the investment objectives, financial situation and particular needs of an investor. It should not be relied upon as a substitute for professional advice.


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